U.S. Rep. John Kline, R-Minn., told President Obama Thursday that allowing small businesses to pool together to buy insurance is a better idea than a health insurance exchange that the president supports.

Kline made his remarks at Obama's bipartisan health care summit, which took place in Washington.

Kline said allowing small businesses to pool together would allow them to spend less on insurance like large businesses do.

"So they get all of the advantages if they self-insure, of being able to avoid the 50 state mandates; being able to lower their administrative costs because they're not having to deal with that," Kline said. "And it will lower the cost of premiums for these small businesses and allow them to insure more people."

The health insurance exchange would allow consumers to purchase insurance through a marketplace that would set standards and prices for health insurance. Kline is the only Minnesota member of Congress who was invited to the summit.